Economy Quiz

What type of economy does the U.S. primarily operate under?

• Command economy

• Mixed economy

• Free market economy

• Traditional economy

What is a key characteristic of a market economy?

• The government controls all economic activities.

• Companies compete against each other.

• There is only one provider for each type of service.

• All property is owned by the government.

Why is it considered a bad deal for consumers if there is only one cell phone provider?

• It increases the variety of services.

• It allows for better government control.

• It leads to higher prices and fewer choices.

• It promotes international trade.

What is the primary purpose of anti-trust laws in the United States?

• To increase competition among businesses

• To support monopolies

• To regulate prices of consumer goods

• To decrease corporate taxes

What was the outcome of AT&T's attempt to buy T-Mobile in 2011?

• The merger was successful

• The FTC blocked the merger

• T-Mobile bought AT&T instead

• The merger was approved without conditions

Which act gives the U.S. government the power to prevent companies from merging to reduce competition?

• The Sherman Anti-Trust Act of 1890

• The Clayton Antitrust Act of 1914

• The Federal Trade Commission Act

• The Consumer Protection Act

What role does the Federal Trade Commission (FTC) play in a mixed economy?

• It makes materials for space rockets.

• It takes action against companies that deceive people.

• It builds courthouses.

• It competes to create the most clump-free mascara.

Which agency began to address the problem of unauthorized charges on people's cell phone bills in 2012?

• Department of Economic Security

• Food & Drug Administration

• Federal Communications Commission (FCC)

• National Aeronautics & Space Administration

What does the term 'tariff' refer to in the vocabulary section?

• A type of antitrust law.

• A command to control market practices.

• A tax or duty to be paid on a particular class of imports or exports.

• A government regulation to ensure free competition.

What type of economy is described where the government owns and offers all the goods and services?

• Mixed economy

• Free market economy

• Command economy

• Traditional economy